Insurance

Insurance 101: Common Questions Answered

Right now, you probably have a lot of unanswered questions on insurance. It is a pretty broad topic. We’ve scoured the Internet and come up with some of the most common questions which we’ll be going over and answering in this guide.

To those who’ve still got questions about insurance, you’ve got nothing to worry about. We’ve got you. We’ve compiled a list of 7 frequently asked questions about insurance to keep you informed.

ANSWERING 7 OF THE MOST FREQUENTLY ASKED QUESTIONS ABOUT INSURANCE

Should I use an agent to purchase insurance?

Buying through a broker or agent will cost you more than buying direct from an insurer. However, using ang agent can help those who know very little about insurance or need help navigating the process.

Although it is an added expense, insurance agents can bring a lot to the table. They’ll help you find some of the best insurance companies and policies that don’t cost too much. They can also help with insurance for big changes such as buying a house, adding a driver to your car insurance policy, and more.

When purchasing insurance, what should be part of my criteria?

The first thing you should look for when you purchase insurance is the cost. How much do you have to pay to be able to enjoy the benefits of the insurance you’re considering buying? Some companies might charge too much. And so, the best way to make sure you don’t pay more than the usual is by comparing different insurance policies from different companies. Check which insurance policy suits you and your income best.

You should also find reliable insurance companies. To do so, look it up on Google and read articles from trusted sites. Ask your friends and family if they know anything about the insurance company.

What is the difference between life insurance and health insurance?

To a lot of people, life and health insurance are practically the same thing. Well, they aren’t. Life insurance is a type of insurance that pays your beneficiaries upon your death. Health insurance, on the other hand, is a type that helps you pay for your medical bills and anything medicine-related. Because we all know that healthcare is expensive.

What happens if I miss a premium payment?

Usually, your insurance premiums have grace periods. If you miss the deadline, you’re given an extension which is called a grace period. Failure to pay your premium within the grace period usually means losing your insurance coverage. When your insurance can get reinstated will all depend on your insurance provider.

What is a term life insurance policy and a permanent life insurance policy? And what is the difference?

Term life insurance is a type of life insurance policy with a specified timeline. A beneficiary will be able to get the death benefit if the insured or covered person dies within that particular period of time. Permanent life insurance, on the other hand, means the person is covered for life. There is no specified time period.

If you choose to get the term life insurance policy and it has expired, you are free to renew it, convert it to a permanent life insurance policy, or terminate the term life insurance policy.

THE TAKEAWAY

We hope those answers have cleared the air and helped you understand what insurance is and how it works. There are tons of things that go into insurance but you don’t need to get overwhelmed. Just start with the basics and go from there.

Start your insurance journey right by reading great articles that explain insurance and everything under it.

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